Housing associations reinvest record amounts

A new value for money report published by the Regulator of Social Housing has revealed that reinvestment in new and existing homes has reached record levels.

Housing associations have continued to focus on development, building safety, energy efficiency and stock decency, according to the new Value for Money report.

The RSH publishes Value for Money metrics annually so boards and other stakeholders can assess how each housing association is performing against its peers.

Reinvestment into existing stock and acquisition or development of new homes increased to £14.6bn from £12.5bn in the previous year, this is the highest level recorded since the Value for Money metrics were introduced in 2018.

The median headline cost per property rose by 12% to £5,136, which is also the highest level recorded.

The report also found that tall buildings are associated with high costs - providers with over 10 per cent of homes located in a block more than 7 storeys in height reported a headline cost of £9,343 per unit. Providers with over half of their stock categorised as house or bungalow only reported a headline cost of £4,812 per unit.

London has the highest capital reinvestment into existing homes, which increased by 13% to £1,680 per unit - almost 50% above the England average.

Will Perry, directory of strategy at RSH, said: “The sector as a whole is proving resilient at grappling with competing demands on their resources, investing record amounts on new and existing homes, though inflation and high levels of repairs works are driving up unit costs.

“This year, we have also carried out new and expanded analysis which allows us to understand in greater detail some of the structural factors that can impact on value for money. This supports our ongoing scrutiny and regulation of the sector, especially as pressures intensify, and provides important insight for landlords as they consider what drives their businesses.  

“It is crucial that landlords  challenge themselves on their efficiency so they can continue to build more homes and deliver better  services for people who need them.”